{
  "url": "https://openlegislation.uk/friendly-societies-insurance-business-amendment-regulations-1996/schedule-1/paragraph-2",
  "json_url": "https://openlegislation.uk/friendly-societies-insurance-business-amendment-regulations-1996/schedule-1/paragraph-2.json",
  "legislation": "uksi/1996/3008",
  "legislation_title": "The Friendly Societies (Insurance Business) (Amendment) Regulations 1996",
  "legislation_url": "https://openlegislation.uk/friendly-societies-insurance-business-amendment-regulations-1996",
  "path": "schedule/1/paragraph/2",
  "kind": "paragraph",
  "number": "2",
  "heading": null,
  "text": "For the purposes of this Schedule—\n“business amount” means—\n(a) for a society carrying on only general business, the general business amount;\n(b) for a society carrying on only long term business, the long term business amount;\n(c) for a society carrying on both general business and long term business, in the case of its general business assets, the general business amount and in the case of its long term business assets, the long term business amount;\n“connected company” of any company means—\n(a) that company’s holding company;\n(b) a subsidiary of that company;\n(c) a subsidiary of the holding company of that company;\nand references to “subsidiary” and “holding company” shall have the same meanings as they have in section 96 of the 1982 Act;\n“counterparty” in relation to a society means—\n(a) any one individual;\n(b) any one unincorporated body of persons;\n(c) any one company not being a member of a group;\n(d) any group of companies excluding any companies within the group which are dependants of the society; or\n(e) any government of a State together with all the public bodies, local authorities or nationalised industries of that State,\nin which the society has made investments or against whom it has rights whether in pursuance of a contract entered into by the society or otherwise; and references to dealings with or by a counterparty includes dealings with or by any person or body of persons included within the definition of counterparty;\n“counterparty exposure” means the aggregated value determined in accordance with paragraph 14 below;\n“debts due or to become due” includes any debts which would become due if the society were to exercise any right to which it is entitled to require payment or repayment of the same;\n“diversified contract for differences” means a contract for differences whose value does not depend to a significant extent on fluctuations in the value of, or the income from, assets of any of the descriptions in paragraphs 19 to 28, 30 or 32 to 38 of Part II of this Schedule and “undiversified contract for differences” shall be construed accordingly;\n“excess concentration with a number of counterparties” has the meaning given in paragraph 18 below;\n“general business amount” means the aggregate of the society’s insurance liabilities (net of reinsurance) in respect of general business and an amount equal to whichever is the greater of 225,000 ECU or 20 per cent. of the general premium income;\n“group” has the meaning given in section 262(1) of the Companies Act 1985;\n“index linked liabilities” means insurance liabilities in respect of index linked benefits;\n“insurance liabilities” means amounts calculated in accordance with Part V of these Regulations in respect of those items shown at C and D under the heading “Liabilities” in Part I of Schedule 2 to the Friendly Societies (Accounts and Related Provisions) Regulations 1994;\n“long term business amount” means the amount of the society’s insurance liabilities in respect of long term business (net of reinsurance ceded and excluding property linked liabilities), together with—\n(a) the amount of the required margin of solvency (or the amount of the minimum guarantee fund if greater) determined in accordance with regulations 4 to 6 and Schedule 1 above less the amount of any implicit item valued in accordance with regulations 9 to 11 of these Regulations; and\n(b) the amount of any deposit-back in connection with a contract of reinsurance in respect of long term business;\nsave that for the purposes of assessing compliance with the permitted asset exposure limit, it shall further exclude index linked liabilities;\n“permitted asset exposure limit” has the meaning given in paragraph 3 of this Schedule;\n“permitted counterparty exposure limit” has the meaning given in paragraph 4 of this Schedule;\n“property linked liabilities” means insurance liabilities in respect of property linked benefits;\n“readily realisable” in relation to a listed investment means a listed investment in respect of which regulation 26(4) does not apply or, by virtue of regulation 26(5), is to be taken not to apply;\n“short term deposit” means a sum of money which may be withdrawn at the discretion of the lender without penalty or loss of accrued interest by giving notice of withdrawal of one month or less.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "footnote",
      "label": "f1",
      "text": "These definitions were amended by section 30 of, and Schedule 2 to, the Companies Consolidation (Consequential Provisions) Act 1985 (1985 c. 9) and article 23 of, and Part II of Schedule 1 to, the Companies Consolidation (Consequential Provisions) (Northern Ireland) Order 1986 (S.I. 1986/1035)."
    },
    {
      "type": "footnote",
      "label": "f2",
      "text": "1985 c. 6; section 262 was inserted by section 22 of the Companies Act 1989 (c. 40)."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1996/3008/schedule/1/paragraph/2",
    "retrieved_at": "2026-10-29T12:31:09.195562+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}